New York considers building an offshore power grid

New York state is considering building a subsea transmission backbone to support multiple offshore wind projects, and has announced an in-depth study that will look at the different approaches to transmission in the European offshore market.

With a 2.4GW offshore wind target for 2030, New York is planning to develop its market in two phases, starting with an initial 800MW request for proposals due later this year, followed by a larger second phase that will take a more deliberate approach to things like transmission.

Speaking this week, Bradley Jones, chief executive of NYISO, New York’s grid operator, noted that offshore developers are “a little bit torn” on whether they would prefer to build and own their own transmission lines or whether a state like New York should take more responsibility for connecting projects to the onshore grid.

“The first [developers] in the market clearly see an opportunity to get there and lock up some of the places where you can connect onshore,” Jones said Wednesday at Infocast’s NY Energy Market Summit.

“It’s the next developers that we have some concerns about. If the next developers no longer have good places to bring their power onshore, they’re going to be limited in their ability to compete in this market.”

Several hours after Jones’ remarks, New York Governor Andrew Cuomo issued a release formally announcing a study on the issue, to be led by the New York Power Authority.

Germany, notably, provides the interconnection for offshore developers, paid for by a supplement on power bills. Germany's socialised approach to the offshore grid has been a key factor in the country’s zero-subsidy bids.

Jones says New York will be “hiring a consultant to go overseas” and report back on what’s working well.

“There are some advantages to an offshore grid, just like there are an advantage to an onshore grid, allowing all participants to compete fairly," he says.

“We’re not to the point where we’re saying it does make sense [for New York], but we want to understand [Europe’s ] learnings, their regulatory process, and how they got to where they are.”

The results of New York's study are due this fall.

Some offshore wind developers remain reluctant to embrace an offshore grid, partly out of concerns that such a joined-up approach would bring delays.

“What you’re hearing from offshore wind developers is you can’t bundle transmission and generation together – a backbone is too big, too complicated, it can’t be financed, and look what happened in Germany,” Sanderson says, referring to delays in German offshore transmission earlier this decade.

Deepwater obtains local cabling nod for 90MW South Fork

“What happened in Germany? Early on, they had delays in transmission and they were painful, but it’s because they did not plan transmission.”

Other challenges in Germany included the vast distance of many projects from shore, necessitating high-voltage direct current (HVDC) transmission lines and offshore transformer stations, which may not be necessary for US markets.

By taking a systematic approach to transmission, a state like New York can eliminate “the two biggest risks” for offshore wind developers, Sanderson claims.

First, it removes permitting risk, with Sanderson noting that the onshore interconnection for Deepwater Wind’s 90MW South Fork project off New York recently squeaked through the East Hampton Town Board by a vote of 3-2. “Five individuals held the fate of that 90MW cable,” he says.

Second, a broader approach can help to smooth the integration of several gigawatts of new generation capacity into the onshore grid, no small feat in a state like New York where the downstate grid is already congested.

New York considers building an offshore power grid

New York state is considering building a subsea transmission backbone to support multiple offshore wind projects, and has announced an in-depth study that will look at the different approaches to transmission in the European offshore market.

With a 2.4GW offshore wind target for 2030, New York is planning to develop its market in two phases, starting with an initial 800MW request for proposals due later this year, followed by a larger second phase that will take a more deliberate approach to things like transmission.

Speaking this week, Bradley Jones, chief executive of NYISO, New York’s grid operator, noted that offshore developers are “a little bit torn” on whether they would prefer to build and own their own transmission lines or whether a state like New York should take more responsibility for connecting projects to the onshore grid.

“The first [developers] in the market clearly see an opportunity to get there and lock up some of the places where you can connect onshore,” Jones said Wednesday at Infocast’s NY Energy Market Summit.

“It’s the next developers that we have some concerns about. If the next developers no longer have good places to bring their power onshore, they’re going to be limited in their ability to compete in this market.”

Several hours after Jones’ remarks, New York Governor Andrew Cuomo issued a release formally announcing a study on the issue, to be led by the New York Power Authority.

Germany, notably, provides the interconnection for offshore developers, paid for by a supplement on power bills. Germany's socialised approach to the offshore grid has been a key factor in the country’s zero-subsidy bids.

Jones says New York will be “hiring a consultant to go overseas” and report back on what’s working well.

“There are some advantages to an offshore grid, just like there are an advantage to an onshore grid, allowing all participants to compete fairly," he says.

“We’re not to the point where we’re saying it does make sense [for New York], but we want to understand [Europe’s ] learnings, their regulatory process, and how they got to where they are.”

The results of New York's study are due this fall.

Some offshore wind developers remain reluctant to embrace an offshore grid, partly out of concerns that such a joined-up approach would bring delays.

“What you’re hearing from offshore wind developers is you can’t bundle transmission and generation together – a backbone is too big, too complicated, it can’t be financed, and look what happened in Germany,” Sanderson says, referring to delays in German offshore transmission earlier this decade.

Deepwater obtains local cabling nod for 90MW South Fork

“What happened in Germany? Early on, they had delays in transmission and they were painful, but it’s because they did not plan transmission.”

Other challenges in Germany included the vast distance of many projects from shore, necessitating high-voltage direct current (HVDC) transmission lines and offshore transformer stations, which may not be necessary for US markets.

By taking a systematic approach to transmission, a state like New York can eliminate “the two biggest risks” for offshore wind developers, Sanderson claims.

First, it removes permitting risk, with Sanderson noting that the onshore interconnection for Deepwater Wind’s 90MW South Fork project off New York recently squeaked through the East Hampton Town Board by a vote of 3-2. “Five individuals held the fate of that 90MW cable,” he says.

Second, a broader approach can help to smooth the integration of several gigawatts of new generation capacity into the onshore grid, no small feat in a state like New York where the downstate grid is already congested.

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